SOARING property prices have created a dilemma for the new affluent generation.

With property values continuing to grow by more than 15 per cent year on year, more and more people are falling into the inheritance tax bracket.

"These are often people who have never taken sufficient tax planning advice before," said Matt Quinn, Manchester-based regional director of St. James's Place.

"The inheritance tax threshold is é263,000, but an increasing number of young couples in their 30s and 40s are finding themselves living in a é260,000 house, inheriting their grandmother's home and suddenly facing an unexpected tax liability."